Friday, September 24, 2010
What I term critical support is the last layer of support underlying the stock market and being the longest M/A produces the sharpest bounces off of it. We have come down to it twice this week. Only 10,580 will break it. Market has topped here. I am now short 2% DJ and 1% SP and 32% SDS. Stop 1/4 SDS at SPX>1149.2. Stop 1/4 SDS at SPX>1150.2. Stop 1/4 SDS at DJI 10881. Stop 1% DJ at 10,802. Stop 1% DJ futures at 10,818.